A company is the number one online music retailer through its iTunes music store. The company sells iTunes gift cards in $15, $25, and $50 increments. Assume the company sells $19.7 million in iTunes gift cards in November, and customers redeem $12.7 million of the gift cards in December.

1. & 2. Record the necessary entries in the Journal Entry Worksheet

1. Record the receipt of cash for gift cards.

2. Record the revenue recognized from redemption of gift cards.